Despite the reach of Dodd-Frank, the "too-big-to-fail" dilemma lives on.
Vincent Ryan, CFO Magazine
April 1, 2011
The American banking system is a mess as it still requires the FDIC to help protect the majority of bank account holders. Is there a proper fix? Yes! All we have to do is go north to Canada. About 80 years ago they found the proper liquidity requirements for banks. They do not have bank failures and never will. Over this period of time their banking system has proven to have the right rules. Now, their banks would want to be more wide open like the American, Greek and Spanish banks (to name a few) but due to the fact that they have not be allowed to fracture their assets the Canadian banking system has proven to be the best. Have your experts take a look up there. Their banks do not have the glamour of American banks, even though they are very large banks, but they do have rules which protect not only their account holders but the Canadian taxpayers as well.
Posted by David Gage | April 05, 2011 09:22 am
Great read. Very informative. Big ups to www.CFO.com
Posted by David Harriger | April 05, 2011 12:19 am© CFO Publishing Corporation 2009. All rights reserved.